$MSTR joining the $QQQ is dumb

BrianTycangco鄭彥渊
12-15 18:13

$MicroStrategy(MSTR)$ joining the $Invesco QQQ(QQQ)$ is dumb.

Where is the fiduciary responsibility by Invesco $Invesco(IVZ)$ to their clients (ETF holders)? It's not a "proxy" to BTC because it trades at an enormous premium to the only asset it holds.

Even if MicroStrategy were to be considered a proxy for Bitcoin, it makes little sense to add highly volatile crypto as part of a broad index filled with companies that have an "E" to derive a PE ratio.

It's a high-beta play on Bitcoin. Should that be really part of a company-based index?

All it does is make sure that about 0.6% of QQQ's $207B AUM (or about $1.2B) flows into MSTR's stock upon inclusion. More Nasdaq 100 ETFs will follow suit for sure.

But it looks like it's happening. The powers that be will it to happen. And you'd be crazy to ignore the resulting stream of cash that's going to be flowing into this Bitcoin "proxy."

Honest question:

What is MSTR's moat? Is there anything stopping another company from doing exactly what it's doing? Is there a company that could do what it does better for less (of a premium)?

MSTR, PLTR to Join Nasdaq: Sell the News or Add More?
On Saturday, the Nasdaq 100 announced its annual index rebalancing, adding three companies: Palantir, MicroStrategy, and Axon, while removing Illumina, AMD, and Moderna. However, the two star stocks pull back yesterday. Analysts suggest that the rebalancing effect will not be too soon as there is a buffering zone. ----------------- Which of these companies do you see as a good buying opportunity right now? Sell the news or add more?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment
1